What is NPS?

What is NPS?

NPS is the simplest way to measure the temperature of your customers. It can provide clues on your customer loyalty, user pain points, churn rate, brand value and overall customer sentiment of your product.

Customers usually leave a score and the reason for the score as shown on the Rooler.io example you can see above. You start by asking customers to rate on a scale of 1-10, how likely are they to recommend you to friends or colleagues. You can then classify your users into the following segments:

The Detractors (0-6)

These are unhappy customers who are unlikely to buy from you again, and may even discourage others from buying from you. You’d want to pay special attention to their comments on why they gave that score.

The Passives (7-8)

They are satisfied with your service but not happy enough to be considered promoters. They are prone to switching over when a competitor with a better offering comes to town.

The Promoters (9-10)

Promoters respond with a score of 9 or 10 and are typically loyal and enthusiastic customers. These customers are loyal to your product and are the ones who are likely to be driving your growth from ‘word of mouth’.

In addition to these scores, many NPS surveys also include a follow-up question. By asking why a customer feels the way they do, businesses get more insight into what they need to work on. For example, you'll find out if the UX is an issue or if your funnel doesn’t make sense to customers.

Calculating your NPS score

  1. Once you’ve received responses from your customers, you can proceed to calculate your NPS results. 
  2. Your score is the % of promoters minus the % of detractors. For example, if your NPS survey results indicate that 40% of respondents are promoters and 30% are detractors, then 40% - 30% = 10%. So your score will be 10. 
  3. Scores are on a scale of -100 to 100. A positive score indicates your business is on the right track and the greater the number, the better your product is in the eyes of your customers.

An example of a healthy NPS on Rooler.io is shown above. Some benefits of NPS are:
  1. Qualitative and quantitative feedback
  2. Easy to calculate scores
  3. Customers are more willing to offer feedback

NPS is definitely a valuable tool to track the overall health of your product, service or business in the eyes of your customers and can guide you in making defining decisions to improve to serve customers better.

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